3 Strategies for Creating Inventory
1. Build Your Network
Whether it be through direct mail, cold calling, or even walking through trending neighborhoods, sometimes as an investor, you need to go straight to the source. Direct mail marketing is a huge asset when it comes to sourcing inventory. Reaching out to potential sellers directly in hot markets may lead to a conversation about a cash or investment offer. If they are not interested or able to sell their home, they may know of properties nearby that could use some love.
Additionally, contractors in the area may know of properties near by. If they don’t have any in mind, they can keep an eye out for leads, especially if they know you’re trying to make an investment that would bring them steady work. Partnering with other professionals in the real estate market, specifically in trending neighborhoods you’re going after will give mutually beneficial results. Neighbors can be surprisingly helpful when they realize you care about restoring properties around them, helping their home values and neighborhood quality.
While many investors may be stuck using public domains like Zillow and Redfin, you have a network built around you. At Renovo we can help build your connections with our circle of success. We have a network of vendors, brokers, contractors, and real estate professionals that you have access to once you become a Renovo client. You should also have access to a national or regional listing service. The information hits these services hours and sometimes even days faster than it hits public access. With all of these contacts, there’s is a huge untapped market for finding inventory.
2. Attend Auctions
In addition to knowing and tapping in to your area, you should understand your county’s foreclosure process. Becoming familiar with the market and knowing when your county tax board holds auctions is essential to creating inventory. Check out the pre-foreclosure market. Owners in these situations may be more inclined to accept an all-cash offer. Establish yourself as an expert in creating inventory, and you may even find yourself approached by other agents to work on distressed properties together.
However, when attending auctions you must make sure you’re well prepared. If you’re not prepared, you can leave with a property you didn’t really want at a price that doesn’t make sense. Being prepared means you’ve done your homework, know what type of property you’re going after, and what is in your price range. Once you understand the rules and your goals, you could be walking away with a great deal.
3. Invest in New Construction
New construction is a great long-term investment but may be riskier and more expensive than the type of properties already in your portfolio. When choosing to invest in new construction, you get to decide the location, customize to your preference, and expedite the process. Investing in new and emerging markets can increase your property’s appreciation rate and build equity faster. Buyers love new homes, especially in trendy neighborhoods, so investing in new construction could be your best solution.
If you’re tired of fighting over the low inventory and are ready to take that next step as an investor, we can help. At Renovo, we want to elevate your business and make sure you have the resources you need to achieve success. We’re committed to ensuring your loan closes quickly, no matter the size or complexity. We typically close loans within 10 business days. After closing a loan with Renovo, we deliver construction draws within 48 hours of your request.
New Construction Loans
Ready to get started? Want to learn more about how we can help you grow your investment business? Call us at (888) 568-8894, email us at firstname.lastname@example.org or fill out the form below and a representative will be in touch within 1-5 business days.
222 W. Adams St, Chicago, IL 60606